According to the Endogenous Growth Model, Public Sector Spending on Basic

question 29

Multiple Choice

According to the endogenous growth model, public sector spending on basic research may:

• A) be better spent on the private sector.
• B) have long-term benefits to society.
• C) have short-term benefits to society, but will be money wasted in the long term.
• D) have a higher return than private sector research and development.

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Definitions:

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